Which of the Following Accounting Principles or Conventions Is Contradictory

question 17

Multiple Choice

Which of the following accounting principles or conventions is contradictory to the GAAP requirement to expense R&D costs immediately?

• A)historical cost principle
• B)comparability
• C)conservatism
• D)matching principle

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Definitions:

Variable Costs

Expenses that fluctuate based on the amount of products or services a company generates.

Net Income

Net Income is the total profit of a company after all expenses and taxes have been deducted from revenue.

Variable Costs

Costs that vary in proportion to the level of production or business activity.

Fixed Costs

Expenses that do not change with the amount of goods or services produced over a short period.